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Report reveals greenhouse gas emissions savings from biofuels 'significantly underestimated'

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GasPump_13802299910109Utrecht, 10 November, 2014: To understand the climate benefit of biofuels, their greenhouse gas emissions should be compared with the fossil fuel emissions that they replace in the market, according to a new study released today. While biofuels displace emission intense unconventional fuels such as those derived from oil sands, tight oil and kerogen oil, the resulting emission savings are not correctly accounted for in the Renewable Energy Directive or in the recent Commission Fuel Quality Directive methodology proposal.

The Renewable Energy and Fuel Quality Directives assess the advantages of biofuels compared to fossil fuels by comparing their lifecycle greenhouse gas emissions to a fossil comparator. This comparator is based on the average carbon intensity of fossil fuels on the EU road fuel market and is currently set at 83.8 gCO2eq / MJ. If the benefits of biofuels are to be more accurately reflected, their carbon intensity should be compared with the emissions of the fossil fuels they effectively displace.

The new study published by Ecofys’ energy and climate consultants, examines which fossil fuels would be used on the market if biofuels were not available. This ‘marginal approach’ reveals that:

  • Biofuels mostly replace fuels produced from unconventional oils, not an average blend of fuels, as represented by the fossil comparator;
  • the unconventional oils are mainly oil sands, light tight oil and kerogen, oil whose development is most sensitive to international energy prices and market prospects, and;
  • the emissions of this marginal blend of fossil fuels are higher than from an average blend, at an estimated carbon intensity of 115 gCO2eq / MJ;

This suggests that the current comparator underestimates the greenhouse gas benefit of biofuels by about 32 gCO2eq/MJ.

Taking these significant savings into consideration, biofuels represent a major option to decarbonize the transport sector. Even when taking the average approach, the fossil comparator should also be adjusted to reflect the growing share of unconventional fuels in the market and the increasing extraction efforts required for conventional oil fields.

The recently published Commission proposal to implement existing obligations of the Fuel Quality Directive (98/70/EC) seeks to readjust the average carbon intensity of fossil fuels to 94.1 gCO2eq / MJ. It nevertheless still proposes to compare biofuels with the outdated fossil comparator at 83.8 gCO2eq / MJ. Moreover, the proposed policy does not call for the much needed transparency on the carbon intensity of fossil fuels entering the EU market, contrary to what is expected from biofuels. This policy orientation underestimates the potential of biofuels to decarbonise the transport sector.

Ecofys

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Established in 1984 with the mission of achieving “sustainable energy for everyone”, Ecofys has become a leading expert in renewable energy, energy & carbon efficiency, energy systems & markets as well as energy & climate policy. The unique synergy between those areas of expertise is the key to its success. Ecofys creates smart, effective, practical and sustainable solutions for and with public and corporate clients all over the world. With offices in Belgium, the Netherlands, Germany, the United Kingdom, China and the US, Ecofys employs over 250 experts dedicated to solving energy and climate challenges.

To view the report, please click here.

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